Dell board said to be meeting tonight to vote on buyout deal
An agreement to take the PC maker private is reportedly close to completion, with a buyout offer totaling about $24 billion.
Rumors of a Bloomberg.have been swirling for the past few weeks and now word is that Dell's board plans to vote tonight on whether to take the company private, according to
The deal would offer Dell shares at $13.50 to $13.75 each, which totals around $24 billion, sources familiar with the negotiations told Bloomberg. The buyout could be announced as early as tomorrow morning.
Reportedly Microsoft, private equity firm Silver Lake Management, and company CEO Michael Dell will allin the deal. Michael Dell is $700 million, along with investing 15.7 percent of his stake in the company, which is valued at more than $3.6 billion. This would give him majority ownership of the new private firm.
If the company does go private it will be the largest technology leveraged buyout since the financial crisis hit in 2008, according to Bloomberg.
Like other PC vendors, Dell has been struggling to eke out sales in a sluggish market. The company has also seen its market share eroded by rivals such as HP, Lenovo, and Asus.
But Dell has worked hard to expand into other technology services, especially in the corporate market. Going private would give it the flexibility to ramp up that strategy without having to worry about making shareholders happy every quarter.
CNET contacted Dell for comment. We'll update the story when we get more information.